Restricted Funds
Fund Accounting
Alignmint provides true fund accounting - not just tags or classes like generic accounting software.
Fund Types
- Unrestricted: Resources that can be used for any purpose (general operating)
- Temporarily Restricted: Resources restricted by donors for a specific purpose or time period
- Permanently Restricted: Resources that must be maintained permanently (endowments)
Why Fund Accounting Matters
Fund accounting ensures proper stewardship of donated resources and compliance with donor restrictions. It's required for:
- Financial statements that meet nonprofit accounting standards
- Form 990 reporting
- Grant compliance
- Donor accountability
Releasing Restrictions
When restrictions are met (purpose fulfilled or time passed), funds are released from temporarily restricted to unrestricted.